Sterling rises for third day before price data
Headline inflation data is expected to show a decline to 2.3 percent for the month of November from 2.4 percent previously and edging towards a 2 percent target in the coming years by the Bank of England.
A sharp fall in inflation might further weigh on market expectations of a rate hike. Money markets are pricing in an 80 percent probability of one interest rate hike next year.
However markets would be wary of placing too much of an emphasis on economic data with the central bank repeatedly saying that the outcome of Brexit negotiations will be a key factor for the path of future interest rates.
May is yet to win the support of a deeply divided parliament for the deal she struck last month with European Union leaders to maintain close ties with the bloc with less than three months until Brexit.
"The government is playing a very hardball game, however, as it delays the Brexit vote until the New Year, which is curtailing the debate over May’s plan and effectively giving little time for alternatives to be found," Scotiabank strategists said in a note. (Reporting by Saikat Chatterjee; Editing by Janet Lawrence)
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
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